Vext Science, Inc. ("Vext" or the "Company") (CSE: VEXT) (OTCQX: VEXTF) a cannabinoid operator and brand leader based in Arizona, leveraging its core expertise in extraction, manufacturing, cultivation and marketing to build a profitable multi-state footprint, today provided an update on its progress toward establishing a retail presence in the State of Ohio.
As announced on March 15, 2021, Vext has signed a letter of intent (the "LOI") to form a joint venture to access a provisional cannabis dispensary license (the "Provisional License") held by an Ohio entity (the "License Co."). The License Co. has now received a Certificate of Operation by the Ohio Board of Pharmacy (the "Board") and is fully operational. Once the License Co. has been operational for 12 months, Vext and its joint venture partner may apply to the Board for a change in ownership of the Provisional License.
Ohio's state-sanctioned cannabis sales are expected to be between US$350 million to US$425 million in 2021, under a highly regulated, medical-only framework, compared to US$221.5 million in 2020(1).
Eric Offenberger, CEO of Vext commented, "As we continue to build out our profitable Arizona footprint, we are looking to Ohio as another leg of growth for Vext. The Vapen brand is already being sold in dispensaries across the State. In 12 months, alongside our joint venture partner, we will be positioned to gain access to a coveted retail license in a premier location. The Ohio medical market is demonstrating solid growth, exceeding initial industry projections. It also displays the characteristics we look at from a return on capital perspective, including a limited license structure very similar to what we are familiar with in Arizona, and the potential to transition to adult-use at some point in the future. Between the expansion of our cultivation footprint in Arizona, which we expect will support continued growth in the state, and our pending build-out in Ohio, the next 12 months will be a very exciting period for Vext."
For further information regarding the LOI, see the press release filed on Vext's SEDAR profile on March 15, 2021.
1 MJ Biz Daily, Ohio's growing medical marijuana market poised to reach $400 million in sales a year, March 29, 2021